Court emphasizes the necessity of reasons in judicial orders, overturns ad-interim mandatory injunction lacking justification.
In a significant ruling, the Andhra Pradesh High Court has overturned an order by the Special Judge for Commercial Disputes at Visakhapatnam, which had directed the maintenance of status quo ante in a lease dispute involving the Visakhapatnam Port Authority and M/s. Vishwanadh Avenues (India) Private Limited. The High Court emphasized that judicial orders must be backed by justifiable reasons, especially when granting an interim mandatory injunction.
The dispute arose when the Visakhapatnam Port Authority, which had leased out an auditorium to Vishwanadh Avenues, alleged violations of lease terms and sought to invoke a bank guarantee. In response, Vishwanadh Avenues approached the Special Judge under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim relief. The Special Judge had initially directed the parties to maintain the status quo ante as of the petition filing date, a decision that was challenged by the Port Authority.
In their appeal, the Visakhapatnam Port Authority contended that the status quo ante order was issued without any supporting reasons or prima facie findings, rendering it unsustainable. The High Court agreed, noting that such orders should not be granted lightly and must be based on clear circumstances and evidence. The bench, comprising Justices Ravi Nath Tilhari and Maheswara Rao Kuncheam, emphasized that the absence of reasons undermines the legal sustainability of judicial orders.
The High Court also refrained from delving into the factual disputes regarding the possession of the leased property, leaving it to the Special Judge to resolve these issues in the pending petitions. The case underscores the importance of reasoned judicial orders, as they ensure transparency and fairness in legal proceedings.
The Special Judge has been directed to decide on the pending petitions concerning the interim measures under Section 9 of the Arbitration Act by the next scheduled hearing.
Bottom Line:
Ad-interim mandatory injunction to maintain status quo ante requires assignment of justifiable reasons and prima facie findings; absence of reasons renders such order unsustainable.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 9, Major Port Authorities Act, 2021 Section 68
